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Capitol Hill

ASA Members met with Rep. Pete Stauber (R-MN)

A great day on Capitol Hill for ASA

ASA Texas Members met with Rep. Beth Van Duyne (R-TX)

ASA DC Fly-In Wrap Up

Last week, ASA advocated on Capitol Hill to ensure the voices of subcontractors, who make up the three-fourths of the construction industry, are heard throughout the halls of Congress.

The visit coincides with an extremely busy time on Capitol Hill as Congress works toward finalizing the FY25 Appropriations Bills, the Reauthorization of the Farm Bill, and the FY25 National Defense Authorization Act which contains procurement-related issues important to the construction industry.

Thirty ASA members participated in 21 Senate meetings and 23 House meetings to discuss a variety of issues that face our organization with their home state Members.

ASA members also participated in several group meetings:

  • Senate Small Business Committee- Members met with the Senate Small Business Committee’s Legal Counsel to discuss federal procurement issues such as change order reform, along with the Corporate Transparency Act (CTA) and its effect on small businesses. Members also discussed the expiring tax provisions from the 2017 Tax Cuts and Jobs Act and shared support of H.R. 7024 Tax Relief for American Families and Workers Act, which passed the House and is up for consideration in the Senate.
  • Sen. Tommy Tuberville (R-AL)- Members met with Sen. Tuberville’s office to discuss the Senator’s’ bill to repeal of the Corporate Transparency Act (S.4297).  ASA supports this legislation, which will help small businesses by ending the CTA’s onerous reporting requirements.
  • Sen. Maizie Hirono (D-HI)- Members met with Senator Hirono’s office to discuss federal procurement issues. Her position on the Senate Armed Services and Small Business Committees is valuable and we appreciate her advocacy on our issues.
  • Sen. Kevin Cramer (R-ND)- Members met with key members of the Senator’s staff to discuss his legislation, The Water Infrastructure Subcontractor and Taxpayer Protection Act. ASA supports this legislation, which seeks to improve project delivery and reduce risks of default on federally financed water infrastructure projects by requiring surety bonds on public private projects.
  • Sen. Mark Kelly (D-AZ)- Sen. Kelly is the Democrat co-sponsor of the Water Infrastructure Subcontractor and Taxpayer Protection Act. Members had an opportunity to meet with key staff in Sen. Kelly’s office to discuss their continued support of this legislation, which requires surety bonds for federally funded water infrastructure projects.
  • House Small Business Committee Minority and Majority Staff- Members engaged senior staff for both the minority and majority on federal procurement issues, especially those previously highlighted by ASA member Andrew Christ at a House Small Business Committee hearing on February 6, 2024. Members also advocated for the repeal of the Corporate Transparency Act due to the compliance burdens placed on small businesses.
  • Rep. Pete Stauber (R-MN)- Members met with Rep. Stauber, who is the sponsor of H.R 2726, Small Business Payment for Performance Act which mandates quick payment for contractors following change orders. Rep. Stauber is also Co-chair of the Congressional Construction Procurement Caucus, and we are grateful for his time and continued advocacy on our issues.
  • Rep. Bost (R-IL)- Members met with Rep. Bost’s key staff to discuss bonding issues. Rep. Bost is the Republican sponsor of H.R. 1740, the legislation requiring bonding for federally funded public private partnership projects. ASA supports this legislation to protect taxpayer funds, workers, subcontractors, and suppliers. We appreciate Rep. Bost’s continued efforts to amend the Water Infrastructure Finance and Innovation Act with this legislation.
Business Committee

Meeting with the House Small Business Committee’s Professional Staff responsible for procurement issues.

ASA Arizona Members met with Senator Kelly (D-AZ)’s office. 

ASA Members met with
Senator Tuberville (R-AL)’s staff

ASA Members met with
Senator Moran (R-KS)’s office

Our Voices Were Heard

ASA’s Capitol Hill Fly-In is an important opportunity for members to engage legislators and key committee staff members on our shared priorities. The ASA’s government relations team is always working to advance these priorities, but it is your voice and collective experience as constituents that drives our message even further. Thank you to all the members who took time from their busy schedules to advocate for these critical issues that impact subcontractors.

Promoting Prompt Payments through Legislative Action

A core issue for the ASA is the enforcement of prompt payment to subcontractors and suppliers, especially concerning change orders. The organization supports the "Small Business Payment for Performance Act of 2023" (H.R. 2726), which mandates quick payment for contractors following change orders. Timely payments are vital to maintaining cash flow for subcontractors, ensuring they can meet their financial obligations and maintain stability in their operations.

Enhancing P3 Bonding Requirements

ASA champions H.R. 1740, which seeks to affirm that existing payment and performance security requirements extend to infrastructure projects financed through the Water Infrastructure Finance and Innovation Act (WIFIA), including Public-Private Partnerships (P3s). This legislation is crucial for surety professionals as it upholds stringent bonding requirements, ensuring that all parties are adequately protected in large-scale infrastructure projects.

Reforming Retainage Practices

Another significant focus is the reform of retainage practices. The ASA advocates for reducing the maximum retainage rate from 10% to 5%. High retainage rates can strain subcontractors who must front the cost of labor and materials, impacting their liquidity and financial health. This change would alleviate financial pressure and improve the economic conditions for subcontractors.

Ensuring Fairness in Bid Listing

The ASA supports the "Stop Unfair Bid Shopping Act" (SUBS Act), which mandates that general contractors on federal construction contracts valued at over $1.5 million list the subcontractors for work valued at more than $100,000. This act aims to curb bid shopping, promoting fairness and transparency in the procurement process, thereby protecting subcontractors from being undercut after bidding.

Streamlining Permitting Processes

The ASA continues to advocate for streamlining project review and approval processes through the "One Federal Decision" framework and other enhancements under the Infrastructure Investment Jobs Act (IIJA). Simplifying these processes can reduce delays and costs, benefiting the entire construction timeline and reducing risks associated with surety bonds.

Tax Reform

In advance of large-scale tax legislation that will be forthcoming in 2025, ASA supports the following provisions:

  • the repeal of the Corporate Transparency Act or, at the least, support modifications that ease the regulatory compliance burdens on small business;
  • passage of the Tax Relief for American Families and Workers Act of 2024 (H.R. 7024). Specifically, support for the business tax provisions of Tile II of H.R. 7042 which provide for R&D benefits as well as extended bonus depreciation with increased limits on business expensing for certain assets; and
  • the tax working groups of Congress as they prepare for the expiring provisions of the Tax Cuts and Jobs Act of 2017 (TCJA). Specifically, we support the renewal of the Qualified Business Income Deduction (199A) and all extensions of the provisions related to business succession planning (e.g., increased estate and gift tax limitations).

Supporting Workforce Development

Workforce development remains a priority, with the ASA supporting apprenticeship funding opportunities and opposing the misclassification of workers as independent contractors. Strengthening the workforce is essential for the growth and sustainability of the construction industry.

Encouraging Construction Procurement Reform

Lastly, the ASA supports the House Construction Procurement Caucus, focusing on improving construction procurement policies. This caucus serves as a platform for addressing issues that affect the construction industry and ensuring that procurement practices are equitable and efficient.

These legislative priorities not only address the immediate needs of subcontractors. By supporting these initiatives, ASA helps create a more predictable and fair business environment for all stakeholders in the construction industry.